Disney's game business surges, but layoffs are on the horizon
Disney Infinity helped revenues jump 38 percent to $403 million, while "hundreds" are expected to lose their jobs beginning this week.
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Disney's video game business is booming, but layoffs loom on the horizon.
The media giant announced today that Disney Interactive revenue increased 38 percent to $403 million for the quarter ended December 28, while operating income increased $46 million to $55 million. The uptick in sales was attributed to the success of Disney Infinity and growth from Disney's Japanese mobile business.
Disney Interactive performed better, on a percentage basis, than all of the company's other divisions by a significant margin. Its 38 percent revenue surge was better than Studio Entertainment (23 percent), Consumer Products (11 percent), Parks & Resorts (6 percent), and Media Networks (4 percent).
During an earnings call this afternoon, Disney CEO Bob Iger said (via The Wall Street Journal) that future iterations of Disney Infinity will include a "broader set of our more popular characters," believed to be Star Wars and Marvel characters.
It's not all good news, however, as The Wall Street Journal reported earlier this week that Disney Interactive will cut "hundreds" of jobs beginning as soon as today. Disney has yet to confirm the news, but The Wall Street Journal's sources have been accurate before.
Overall, Disney posted revenue of $12.3 billion (+9 percent) for the quarter and a profit of $1.8 billion (+33 percent).
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